MSE News: Mortgage prisoners need help to escape costly loans, watchdog told

brit1234

I think people who make the biggest financial purchase in their lives should have the sense to read and understand the small print.

Its just down to common sense in the end, too many people were utterly reckless and have no one apart from themselves to blame.

Consumerist

brit1234 wrote: »

I think people who make the biggest financial purchase in their lives should have the sense to read and understand the small print.

Let's hope that if you ever have to go to hospital for an operation, the doctor doesn't ask you why you haven't performed the operation yourself. After all, it's your body and you should know the intimate details of your anatomy, shouldn't you?

Consumerist

brit1234 wrote: »

I think people who make the biggest financial purchase in their lives should have the sense to read and understand the small print.

So consulting an "expert" is a waste of time?

leveller2911

You never see threads on here where people who have made large sums of money from HPI whinge about how unfair it is to those who could'nt afford to buy......

Strange that, did they offer to donate a few £thousand of their profit to help young FTB ?, no it was a case of f*ck you Jack so you reap what you sow.




Its nothing new, back in the late 80,s the property crash meant people went BR or got reposessed ,house prices fell and the young could afford to buy for once..I know a few people on IO mortgages who still don't have any repayment plan, no overpaying and still grasping the last hope of HPI..... Losers;)

Not one of them look at it as buying a home, they bought an investment...........

Consumerist

leveller2911 wrote: »

You never see threads on here where people who have made large sums of money from HPI whinge about how unfair it is to those who could'nt afford to buy...... Strange that, did they offer to donate a few £thousand of their profit to help young FTB ?, no it was a case of f*ck you Jack so you reap what you sow.

To be fair, though, it was only a paper profit unless they were selling up for good. If they were just moving, they also had to pay inflated prices for the new homes.

I know a few people on IO mortgages who still don't have any repayment plan, no overpaying and still grasping the last hope of HPI..... Losers

I agree that such people are in real trouble already and the predictions are that it is more likely to get worse than better.

leveller2911

Consumerist wrote: »

To be fair, though, it was only a paper profit unless they were selling up for good. If they were just moving, they also had to pay inflated prices for the new homes.


The problem was HPI going through the roof compared to earnings and affordability. When that 1st rung of the ladder gets too high comparative to earnings then the market freezes.Many people ,me included could see this coming 6yrs ago, basic economics.

I partly blame the greed of housebuyers/sellers and also Government for raiding Pension funds,changing Pension rules that then encouraged people to look elsewhere save for their old age..............

Oh and lastly Crap TV programmes like "Homes Under the hammer" encouraging BTL, small time property developers who bought cheap, quick splash of paint and hay presto £30k profit and not forgetting the idiots who bought the houses for not doing their homework.. I could go on but I can't be @rsed....

Consumerist

leveller2911 wrote: »

The problem was HPI going through the roof compared to earnings and affordability. When that 1st rung of the ladder gets too high comparative to earnings then the market freezes. . .

Or the banks start lending recklessly.

. . . Many people ,me included could see this coming 6yrs ago, basic economics.

Yes, me too, But the average Joe Public has to rely on receiving sound advice from those who are supposed to understand the situation. The commission culture of the past is, in my view, [largely] to blame for turning advisers into what became, primarily, salespeople.

Brodiebobs

Everyone seems to be talking about 125% mortgages and irresponsible lending. What about those that were sensible and are now trapped?

We bought in 2007, had a 20% deposit only borrowed 2.5x income and have consistently overpaid the mortgage since 2010... but at this moment in time we are on the cusp of negative equity, we cant remortgage to a better rate due to LTV, we want to move but we need 15% deposit which we dont have, and even at the £300 a month we save at the moment it will take us about 5 years to save this deposit.... so we're trapped here.

Consumerist

Brodiebobs wrote: »

Everyone seems to be talking about 125% mortgages and irresponsible lending. What about those that were sensible and are now trapped? We bought in 2007, had a 20% deposit only borrowed 2.5x income and have consistently overpaid the mortgage since 2010... but at this moment in time we are on the cusp of negative equity, we cant remortgage to a better rate due to LTV, we want to move but we need 15% deposit which we dont have, and even at the £300 a month we save at the moment it will take us about 5 years to save this deposit.... so we're trapped here.

Whilst I agree with the FSA's proposed imposition of some sanity to the mortgage market by regulation, I feel that some help should be given to people in your situation.

leveller2911

Brodiebobs wrote: »

Everyone seems to be talking about 125% mortgages and irresponsible lending. What about those that were sensible and are now trapped?

We bought in 2007, had a 20% deposit only borrowed 2.5x income and have consistently overpaid the mortgage since 2010... but at this moment in time we are on the cusp of negative equity, we cant remortgage to a better rate due to LTV, we want to move but we need 15% deposit which we dont have, and even at the £300 a month we save at the moment it will take us about 5 years to save this deposit.... so we're trapped here.

Well your mistake was buying in 2007,It may well have been the only option for you, don't know your personal circumstances, but 07 was not a good year to buy.Don't forget that interest rates have been at an all time low for that past couple of years, so when you were in a position to overpay savers were getting less than .5% interest rates so you gained and lost but those who rented or no mortgage lost ..

Its swings and roundabouts but I'm pretty sure you would be howling with rage if Interest rates rose to help savers;).

To your credit you are doing the right thing by overpaying as interest rates are only going one way so you will benefit in the end.The problem is people want it all their own way rather than a balance..
Personally I have about £38k saved up for a deposit but unless house prices fall I will stay renting.I'd rather have a life and rent than own and be shackled..When/if we buy it will be a home and not an investment.

Negative equity is only a problem if you need to sell,doesn't sound like you do..